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KLN Logistics Group Limited (HK:0636)
:0636
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KLN Logistics Group Limited (0636) AI Stock Analysis

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HK:0636

KLN Logistics Group Limited

(OTC:0636)

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Neutral 58 (OpenAI - 4o)
Rating:58Neutral
Price Target:
The overall stock score for Kerry Logistics Network is 58, driven by a moderate financial performance with improved profitability but cash flow concerns. The technical analysis reflects a bearish trend, impacting the score negatively. However, the stock's low valuation and reasonable dividend yield offer potential value for investors, balancing some of the risks.

KLN Logistics Group Limited (0636) vs. iShares MSCI Hong Kong ETF (EWH)

KLN Logistics Group Limited Business Overview & Revenue Model

Company DescriptionKLN Logistics Group Ltd. engages in the provision of handling and supply chain solutions. It operates through the Integrated Logistics and International Freight Forwarding segments. The Integrated Logistics segment offers storage, warehousing, trucking and distribution, and returns management services. The International Freight Forwarding segment includes air, ocean and road freight forwarding services. The company was founded in 1981 and is headquartered in Hong Kong.
How the Company Makes MoneyKLN Logistics Group Limited generates revenue primarily through its logistics and supply chain services, which encompass freight forwarding, warehousing, and distribution activities. The company earns money by charging clients for transporting goods, managing inventory, and facilitating the movement of products from suppliers to end customers. Key revenue streams include service fees for freight forwarding, storage fees for warehousing, and consulting fees for supply chain management solutions. Additionally, strategic partnerships with shipping lines, airlines, and local transportation providers enable KLN Logistics to optimize its service offerings and enhance profitability. The company's focus on technology-driven solutions also supports operational efficiencies and cost savings, contributing to its earnings.

KLN Logistics Group Limited Financial Statement Overview

Summary
Kerry Logistics Network shows a positive trend in income metrics with improved margins and revenue growth in 2024. The balance sheet reflects moderate leverage and an improved return on equity, though the decline in equity presents a risk. Cash flow analysis is hindered by unavailable data for 2024, indicating potential liquidity concerns. Overall, the company demonstrates recovery in profitability but faces challenges in cash flow management.
Income Statement
70
Positive
The revenue growth from 2023 to 2024 was significant at 22.88%, but it followed a sharp decline from 2022. Gross profit margin for 2024 was 9.69%, indicating moderate efficiency. Net profit margin improved to 2.65% in 2024, showing better profitability compared to 2023. EBIT and EBITDA margins improved to 4.83% and 6.26% respectively, suggesting an enhancement in operational efficiency.
Balance Sheet
60
Neutral
The debt-to-equity ratio in 2024 was 0.69, indicating moderate leverage. Equity ratio was 39.24%, reflecting a stable capital structure. ROE improved to 9.20% in 2024, highlighting better returns for shareholders. However, the decreasing trend in stockholders' equity indicates potential risk in long-term financial health.
Cash Flow
40
Negative
Free cash flow was not available for 2024, making growth assessment difficult. In 2023, the company had a free cash flow of 2.13 billion. The absence of operating cash flow in 2024 raises concerns about liquidity and cash management. Free cash flow to net income ratio in 2023 was 2.65, suggesting strong cash generation relative to net income.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue60.05B58.27B47.41B82.33B78.95B49.62B
Gross Profit6.06B5.65B4.90B8.35B9.00B4.63B
EBITDA3.79B3.65B4.01B7.77B7.67B4.04B
Net Income1.35B1.54B804.03M3.58B5.75B2.90B
Balance Sheet
Total Assets43.28B42.70B42.12B45.33B48.16B56.90B
Cash, Cash Equivalents and Short-Term Investments6.09B6.58B6.52B9.29B9.91B8.95B
Total Debt11.56B11.49B10.86B11.76B10.10B13.66B
Total Liabilities23.79B23.62B22.01B24.08B23.33B24.42B
Stockholders Equity17.01B16.76B17.59B18.43B21.04B27.48B
Cash Flow
Free Cash Flow2.68B2.16B2.13B3.94B4.19B3.26B
Operating Cash Flow3.39B2.87B2.95B5.56B5.93B4.56B
Investing Cash Flow-1.17B-777.19M-1.75B-574.03M10.80B-329.22M
Financing Cash Flow-2.24B-2.13B-3.69B-4.15B-15.65B-1.74B

KLN Logistics Group Limited Technical Analysis

Technical Analysis Sentiment
Negative
Last Price6.98
Price Trends
50DMA
7.86
Negative
100DMA
7.85
Negative
200DMA
7.20
Negative
Market Momentum
MACD
-0.18
Negative
RSI
33.06
Neutral
STOCH
34.73
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0636, the sentiment is Negative. The current price of 6.98 is below the 20-day moving average (MA) of 7.35, below the 50-day MA of 7.86, and below the 200-day MA of 7.20, indicating a bearish trend. The MACD of -0.18 indicates Negative momentum. The RSI at 33.06 is Neutral, neither overbought nor oversold. The STOCH value of 34.73 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:0636.

KLN Logistics Group Limited Peers Comparison

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
78
Outperform
$46.37B8.909.96%6.07%-9.65%-1.78%
74
Outperform
HK$112.26B12.5213.91%3.54%13.97%2.03%
71
Outperform
HK$4.05B7.5137.50%5.41%56.58%1963.38%
68
Neutral
HK$80.33B11.1112.40%11.05%81.01%
63
Neutral
$10.79B15.437.44%2.01%2.89%-14.66%
61
Neutral
HK$88.88B70.115.53%12.14%
58
Neutral
$12.62B9.268.51%3.72%26.36%-18.67%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:0636
KLN Logistics Group Limited
6.98
-0.33
-4.46%
HK:0598
Sinotrans
5.21
1.57
42.97%
HK:2057
ZTO Express (Cayman), Inc. Class A
142.60
-45.27
-24.10%
HK:2618
JD Logistics, Inc.
12.07
-2.79
-18.78%
HK:2490
LC Logistics, Inc
7.07
-4.10
-36.71%
HK:1519
J&T Global Express Limited
9.90
3.84
63.37%

KLN Logistics Group Limited Corporate Events

Kerry Logistics Network Announces Special General Meeting for Framework Agreement Revisions
May 2, 2025

Kerry Logistics Network has announced a special general meeting to discuss and approve revisions to the annual caps under the 2024 KLN Logistics Services Framework Agreement and the 2024 SF Logistics Services Framework Agreement. These revisions are aimed at enhancing the company’s operational capabilities and ensuring compliance with regulatory requirements, potentially impacting its market positioning and stakeholder relations.

Kerry Logistics Network Announces 2025 Annual General Meeting
Apr 28, 2025

Kerry Logistics Network has announced its upcoming annual general meeting scheduled for May 26, 2025, which will be held as a hybrid meeting in Hong Kong. The agenda includes receiving financial statements, declaring a final dividend, re-electing directors, and re-appointing PricewaterhouseCoopers as the auditor. Additionally, the meeting will consider resolutions for the issuance of additional shares and other securities, reflecting the company’s strategic focus on expanding its capital base.

KLN Logistics Group Limited Announces Name Change and Corporate Amendments
Apr 24, 2025

KLN Logistics Group Limited has officially changed its name from Kerry Logistics Network Limited following shareholder approval and regulatory confirmation. This change, effective from April 2025, will not impact the company’s operations or financial condition, and existing shares remain valid. Additionally, the company has adopted a new memorandum and amended its bye-laws, reflecting these changes in its corporate structure.

Kerry Logistics Network Revises Annual Caps Amid Growing Demand
Mar 28, 2025

Kerry Logistics Network has announced revisions to its annual caps for several framework agreements due to anticipated growth in demand. The company plans to adjust these caps for the years ending 2025, 2026, and 2027 to accommodate expected transaction amounts. This move is in compliance with Chapter 14A of the Listing Rules, which requires reporting, announcement, and shareholder approval for certain agreements. The revisions are significant as they reflect the company’s strategic positioning to handle increased operational demands and maintain compliance with regulatory requirements.

Kerry Logistics Network Announces Final Dividend for 2024
Mar 28, 2025

Kerry Logistics Network Limited has announced a final cash dividend of HKD 0.15 per share for the financial year ending December 31, 2024, with payment scheduled for June 10, 2025. This announcement reflects the company’s commitment to delivering shareholder value and may impact its financial positioning and stakeholder relations positively.

Kerry Logistics Network to Rebrand as KLN Logistics Group
Mar 28, 2025

Kerry Logistics Network Limited announced the successful passing of all resolutions at its Special General Meeting held on 28 March 2025. Notably, the company will change its name to KLN Logistics Group Limited, reflecting a strategic rebranding. This change, along with amendments to the company’s Memorandum and Bye-laws, was approved by a significant majority of shareholders, indicating strong support for the company’s future direction and operational adjustments.

Kerry Logistics Network Reports Strong Financial Growth in 2024
Mar 28, 2025

Kerry Logistics Network has announced its audited consolidated annual results for the year ending December 31, 2024. The company reported a 23% increase in revenue to HK$58,274 million and a 12% rise in core net profit to HK$1,357 million. Profit attributable to shareholders surged by 95% to HK$1,542 million. The Integrated Logistics (IL) business saw a slight decrease in segment profit, while the International Freight Forwarding (IFF) business experienced a significant growth of 39%. A proposed final dividend of 15 HK cents per share is expected to be paid in June 2025. These results highlight the company’s strong financial performance and its strategic positioning in the logistics industry.

Kerry Logistics Network Proposes Name Change and Corporate Amendments
Mar 4, 2025

Kerry Logistics Network Limited has announced a special general meeting to consider significant changes, including a proposed name change to KLN Logistics Group Limited and amendments to its Memorandum and Bye-laws. These changes, subject to approval, aim to streamline the company’s operations and align its corporate structure with strategic goals, potentially impacting its market positioning and stakeholder relations.

Kerry Logistics Network Proposes Rebranding to KLN Logistics Group
Mar 3, 2025

Kerry Logistics Network Limited is proposing to change its name to KLN Logistics Group Limited as part of a rebranding effort to establish a more unified corporate identity. The change, which requires shareholder and regulatory approval, is intended to strengthen the company’s brand and strategic positioning without impacting its operations or financial condition.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Apr 22, 2025